Written answers

Wednesday, 1 February 2017

Department of Jobs, Enterprise and Innovation

Brexit Issues

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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331. To ask the Minister for Jobs, Enterprise and Innovation if her Department has conducted a scoping exercise to analyse the potential for exporters to fill the potential void left by British exporters to the EU, post Brexit, assuming they will face restricted access to the EU market, in particular in the area of agrifood; if this analysis has been conducted, the details of specific areas in which potential opportunities may lie for exporters to the EU; and if she will make a statement on the matter. [4769/17]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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The UK's exit negotiations from the EU will not commence until Article 50 has been triggered, which the UK Government have indicated they intend to do no later than the end of March 2017. These negotiations could take the maximum allowed period of two years to complete. Ultimately any deal on Article 50 will require the agreement of the EU Commission, Council and Parliament.

There is a whole of Government approach in place focusing on Brexit issues and my Department and its agencies are to the forefront of this effort. In advance of the UK Referendum my Department conducted a contingency risk assessment of the potential impacts of Brexit across policy areas of my Department. We have refined our analysis post-Referendum and we have been working with Agencies to put in place actions to mitigate risks and maximise opportunities.

It is hard to predict at this stage the full impact of Brexit. Much will depend on the nature of the future trade deal that will be negotiated between the EU and the UK. These negotiations are likely to be complex and multifaceted. The extent of the impact which Brexit would have on the Irish agrifood sector would depend on a range of factors. Of these, the UK's future trading relationship with the EU is a key factor for the agri-food sector in Ireland and an area of high focus for the Government.  Promoting diversified export markets in light of the potential impacts of Brexit is a key priority for my Department. This includes markets that are growing and have scale as well as markets where we are already well established but with potential for further growth. The programme of trade missions and trade events for 2017 includes a substantive focus on the EU and third country markets. In 2017 we have 42 Minister led trade missions to existing and emerging markets.

We continue to work to promote Irish trade in the UK and Europe, our most traditional markets that still account for 65-70% of all Irish food exports. Irish exports to mainland Europe have grown steadily and this market will continue to provide a destination for agri products and other categories of exports that may be challenged by exposure to the UK market. These have been reoriented to reflect an increased focus on EU markets.

In addition the recently signed Comprehensive Economic Trade Agreement between the EU and Canada provides for a significant opening up of agrifood trade which will provide full unrestricted access for Irish beef and other meat products to the Canadian market. Over the years, Ireland has developed an important pig-meat export trade to Canada and now there is potential to develop the export business for Irish beef and lamb also. The removal of the Canadian import tariff of 26.5% will benefit Irish meat exporters. CETA also provides significant new opportunities for the Irish dairy industry.

The value of agriculture exports to emerging markets in Asia, Africa, the Middle East and Central/South America stood at almost €2.2 billion in 2015. The value of trade to these markets increased by 82% in the period 2010 to 2015. Exports to these markets now accounts for 21% of total food and drink exports compared to 16% in 2010. This growth in share of exports occurred during a period when total food and drink exports jumped by more than 45%.

Growth to emerging markets has been led by Asia with trade growing by more than 250% to €955 million led by China, which recorded a fourfold increase. Exports to other Asian markets more than doubled over the period to €300 million. Exports to the Middle East jumped by a third to €380 million.

My Department through Enterprise Ireland is engaged in ongoing Trade Missions to these markets in co-operation with Bord Bia, the Department of Agriculture, Food and the Marine and representatives from the agrifood sector.

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